The ED has raided the Axis Mutual Fund Front-Rringing scam on Friday (August 01, 2025), taking major action in many cities of the country. This Red has been done in Delhi, Gurugram, Kolkata, Ludhiana, Ahmedabad, Bhavnagar and Bhuj.
The ED started the investigation after the FIR of the Mumbai Police, which was recorded in December 2024. It is alleged in the FIR that Veeresh Joshi, who was then a fund manager in Axis Mutual Fund, misused secret trading information and did front-hanging trading. Through this, he and some others took wrong advantage of crores.
Purchase and sale for yourself illegal
Front-ringing is a way in which traders or brokers buy and sell for themselves before trading a big company (eg mutual fund). They know which stock the company will buy or sold and they take advantage of this information in advance. This method is completely illegal and damages the rest of the investors.
According to the ED, accused Viresh Joshi got the trade done through some fake accounts with the help of a person sitting in Dubai. Other brokers also misused the information before trading of Axis Mutual Fund and earned a profit of crores. The investigation so far has revealed that it has been fraud of more than Rs 200 crore and this amount can move further.
Illegal earning rigging
Initial investigations of the ED have also revealed that these illegal earnings were rotated around through shell companies and fake bank accounts. These accounts have a connection with the accused, their relatives and close people. ED is investigating all these transactions and money trails. All angles are being investigated as to which people were involved in this network and how much money was hera.
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